Medtronic 2008 Annual Report Download - page 9

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To facilitate an enterprise-wide approach to innovation, we recently formed a new group called Strategy and
Innovation, which combines Medtronic’s Corporate Strategy, Business Development, Ventures, and Science and
Technology functions. This new group has responsibility for growth initiatives that leverage corporate-wide R&D
capabilities, together with the evaluation of internal and external growth opportunities.
Medtronic Employees Are the Foundation of Our Success
This year as in the past, Medtronic employees played a key role in our collective success. I want to thank all 38,000
employees for working tirelessly in pursuit of our Mission. During the year, our employees around the world helped fulfill
our Mission not only in their day-to-day work, but also by giving their time, talents and financial resources to support a
wide range of philanthropic activities. Their support of disaster recovery efforts in China and Myanmar this spring are
good examples. Employees worldwide made personal donations and also generously gave their time to help those in
need. Employees also spread our Mission of community citizenship through thousands of hours mentoring students,
rebuilding and repairing homes for people in need, serving hungry families at food shelves, and countless other
community activities.
Last year, we gave more than $55 million in corporate contributions, product donations and grants from the Medtronic
Foundation. As Medtronic increases our global footprint, so does the Foundation. We’ve expanded our giving to more
countries where we have a presence, with grants to global organizations projected to be 20 percent of our total
Foundation giving this fiscal year. You can learn more about what Medtronic and the Medtronic Foundation do in
communities around the world at www.medtronic.com/community.
As the company evolves, so has our board of directors. Victor Dzau, M.D., chancellor for Health Affairs at Duke University,
and president and CEO of the Duke University Health System, joined the board this year, adding important medical and
international expertise. In addition, we want to thank and recognize Art Collins for his service as Medtronic’s Chairman
of the Board. After more than 16 years with the company, Art will retire from the board in August. We wish him all the
best in the years to come.
Again, my sincere thanks to all Medtronic employees and board members for their ongoing contributions to
the company.
An Exciting and Purposeful Future
Looking ahead to fiscal year 2009 and beyond, we are well positioned to execute on a number of near- and long-term
opportunities. Demand for our products has never been greater and will only increase as the population continues to
age. We have significant positive momentum with a number of our existing products and markets, including the ongoing
Endeavor launch, the stabilizing global Implantable Cardioverter Defibrillator (ICD) market, increasing momentum in
our Diabetes and Neuromodulation businesses, the acceptance of our Prestige cervical disc, and the emerging potential
of our Surgical Technologies business, which includes Ear, Nose and Throat; Neurologic Technologies; and Navigation.
And, we have a full product pipeline that will allow us to address brand new areas such as sciatica and other new pain
syndromes, depression, epilepsy, and many more diseases—helping to ensure the next five years are as bountiful as
the last five.
At the same time, we have identified and begun executing on a broad set of initiatives to make Medtronic more
focused, integrated and agile. Our strategy is to capture the full value of “One Medtronic” by leveraging our powerful
resources to fund new products, serve more patients and generate enhanced earnings growth. Our financial strength
will enable us to generate increasing capital, and we will strike the right balance between reinvesting for growth and
returning capital to our shareholders.
I could not be more excited to lead Medtronic during this dynamic and important time in the company’s growth and
development. I’m confident we are well positioned to take advantage of the many opportunities that lie ahead.
Sincerely,
William A. Hawkins
President and Chief Executive Officer
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